As if Angry Birds and Fruit Ninja games weren’t great enough mobile applications, a popular new iPhone app is allowing customers to square away their payments without a complicated credit card machine.
Square Up, a free application that lets users accept credit cards on their smart phones, is receiving a lot of positive attention. The transaction itself is simple to perform. A tiny white square, roughly one inch in length, is plugged into the headphone jack of your mobile device. Users then swipe their credit card through the Square reader and type in the amount they wish to charge. Seconds later, the payment is complete.
According to http://www.squareup.com, users are charged a processing fee of 2.75% per transaction if the card reader is used, and 3.5% plus 15 cents if the card information is typed in manually. There are no monthly fees or contracts. The Square also makes paper receipts a thing of the past; customers simply receive a text or email receipt detailing their purchase.
A recent review on Montreal Gazette online finds the application easy to use. Features on the application allow you, as the seller, to post the actual items that you want to put up for sale. During the transaction, you can select the items being purchased by clicking on their little picture on a visual menu. To sign for the card, customers simply scribble their names on the screen using only their fingers. Customers can add tips if they want also, and they are offered in 5% increments. Money is deposited into the merchant’s account the next day, minus the processing fee.
Customers are enjoying this new technology. Kelin Crane, a recent graduate from Oakley, Calif., spoke to Brigham Young University about his Square. He told them that he uses the Square credit card reader while working at Mobile Auto Care.
“Nobody else does a free account with one flat fee,” Crane said. “It’s just so simple. You get it, plug it in and go. It solves the problem of receiving payment in a digital world without adding new ones. As a mobile repair company, we need the capacity to charge people where we serve them,” Crane said.
Square says that users have made one million purchases, an average of just two per reader. This accounts for more than $1 billion in gross payments. Square